Having bad credit doesn’t have to be a life sentence

By Product Expert | Posted in Finance on Thursday, January 28th, 2021 at 9:05 pm
A stock photo of a person looking a credit report.

How can I rebuild my credit score? 

The number one obstacle for people buying a car, even a used vehicle, is obtaining financing. Things get even more difficult when the buyer has a less-than-perfect credit history. Bad things happen to good people and sometimes taking a hit in the credit department is unavoidable. Having a low credit score will not only make getting a loan more difficult, but it will also make the overall cost of the loan more expensive. If you’re wondering, ‘How can I rebuild my credit score,’ the financing experts at Third Coast Auto Group are here to help. This blog is not meant to be a comprehensive guide but instead is supposed to be a jumping-off point. Everyone’s situation is different and getting customized help from a licensed financial expert is probably a good idea.  

READ MORE: Where can I get a loan with bad credit? 

Basic Credit Repair Tips

Keep on track — Obviously, the best way to rebuild credit is to keep current on all bills and debts. But if something happened that doesn’t make that possible, it’s important to pay off those accounts as quickly as possible. Some debts will stop affecting your credit report after seven years, but a lot can happen in that time.  

Don’t Ask — Applying for a lot of credit cards all at once can really take a toll on a credit report. Opening new and unnecessary credit accounts is a major red flag to future lenders. Also, be careful about closing unused credit cards, which can also drop your FICO score a few points. 

Check the Math — Credit reports and compiled by people and mistakes happen. Life can be difficult enough without having to pay for someone else’s mistakes. If something shows up on your credit report that isn’t yours, make sure you dispute the charge as soon as possible.  

Beware of Scams — Debt consolidation services can cause additional problems. A debt that is settled for less than the agreed upon amount, could result in a negative credit report entry. 

If you need help finding financing options to buy a vehicle, make an appointment with a Third Coast Auto Group representative today.